Aztec Revives zk.money for Private Ethereum Payments

Aztec Labs is relaunching zk.money, a privacy-focused crypto wallet designed to shield payment amounts, balances and recipients from public view while offering simpler transfers through usernames and payment links.

The wallet allows users to deposit Ethereum-based DAI, USDC and USDT. USDC and USDT deposits are automatically converted into DAI, making DAI the sole currency used within zk.money.

Unlike standard Ethereum transactions, where wallet balances and transfer histories are publicly visible, zk.money processes payments through the Aztec Network. This conceals transaction amounts and participants after funds enter the system. Users can also send payments to readable addresses such as bob.zk.money instead of traditional hexadecimal wallet addresses.

Aztec Labs CEO Joe Andrews said blockchain payments between individuals should not require exposing their financial histories publicly. The company describes zk.money as self-custodial, meaning Aztec cannot independently spend or freeze users’ funds.

Privacy has limitations, however. Deposits originating from Ethereum still publicly reveal the sender and deposited amount, although the recipient within Aztec can remain hidden.

The relaunched zk.money will also impose transaction restrictions. Individual deposits, payments and withdrawals must remain below $2,500, while users collectively share a $50,000 daily deposit limit. Aztec said the restrictions reflect the experimental nature of the technology and could be increased later.

Deposits cost $0.35 plus Ethereum network fees, while withdrawals cost $0.20. Users receive up to 100 sponsored transactions daily within zk.money. Ethereum addresses used for deposits and withdrawals are also screened under a sanctions policy.

The original zk.money launched in 2021 before shutting down in 2024. According to Aztec Labs, it previously served more than 75,000 wallets and processed over $100 million.

The relaunch comes while the Aztec Network remains in Alpha. Its documentation warns the software has not been fully audited and could contain critical vulnerabilities. A critical flaw was disclosed in Aztec's V5 proof system in August, with a fix planned for V6.

Andrews said zk.money will launch before that fix arrives, with a separate system called Oxide checking payments for errors until users can migrate to the updated network.